# BoC Rate Date - January 28, 2026 ![Jan28](https://d2r7yk1mqahd04.cloudfront.net/images/Jan28.png) ### January 28, 2026 # BoC holds its rate. But for how long? [Email link](https://mailchi.mp/7a8575e3d48b/rate-hold-january28-5385547?e=85e94d3902) *January 28, 2026* – The Bank of Canada **held its policy rate at 2.25%** at its first meeting of this brand new year. Just as it said it would. Bank prime rates will remain at 4.45%, unless you're a Big Six bank that carries a higher prime rate than everyone else (TD, we're looking at you). # Is a Magic 8 Ball our best source of answers right now? Maybe yours is tucked in a box in the garage or basement. Shelved along with the hopes and dreams of seeing rock-bottom mortgage rates again. Or, grab one at a dollar store, which more of us are frequenting due to ever-rising grocery prices. But we should be careful **what we wish for**, flipping that [black ball](https://magic-8ball.com/magic-8-ball-answers/), staring into the tiny triangle of hope (or foreboding) that helps the uncertainty feel contained. ### Another interest rate cut? *'Don't count on it'* Canadians yearn for the pre-pandemic, low-rate days. The Bank of Canada has said only significantly worse numbers — such as negative growth and a rising unemployment rate — would warrant another cut. Apparently, we're all inconsiderate for crossing our fingers for lower rates. ### A 2026 interest rate hike? *'Ask again later'* For no hike to appear this year, the inflation rate has to remain within sight of the 2.0% target. That means carefully balancing the need to spur economic growth with the price pressures from trade disruptions and government spending (such as the recently announced increase [in the GST credit](https://www.cbc.ca/news/politics/mark-carney-gst-affordability-measures-9.7060907) and business supply-chain support to help offset high grocery prices). ### An answer on U.S. trade? *'Signs point to yes'* It may not be the one we want. CUSMA has [protected over 90%](https://macleans.ca/economy/why-trumps-tariffs-didnt-break-canada/) of Canadian exports to the U.S. despite higher tariffs on certain (essential) sectors. Renegotiating the agreement will likely mean major concessions. Canada is building trade bridges pointing away from our troublesome neighbour, but reducing reliance on $500B in U.S. exports will take time and patience. ### Affordable housing market? *'Reply hazy, try again'* The current mortgage rate market is considered 'non-restrictive,' but Canadian consumer confidence is still [stuck in neutral](https://www.canadianmortgagetrends.com/2026/01/mortgage-digest-arrears-rise-to-highest-level-since-2020-but-remain-low-overall/). An expected spring rush of [pent-up demand](https://www.truenorthmortgage.ca/blog/housing-market-forecast) may meet with financial unease, continuing to drag home-buying decisions and keep price growth muted this year. ## What is certain for 2026? Uncertainty. In 2025, we Canadians went in with our [elbows up](https://www.truenorthmortgage.ca/blog/how-trumps-tariffs-could-shape-mortgage-rates-in-2025), and our economy weathered some significant changes. **The real question now is, how long will this economic limbo last?** It seems we'll need to keep that Magic 8 Ball within arm's reach to outsource the not knowing — as we remain here, stuck on 'interest rate hold' with the future vague. --- # WHERE ARE RATES GOING?? There's (obviously) a lot going on. **Stay in the know** — get economic updates, rate forecasts, and insights from CEO Dan Eisner. **[RATE FORECAST 2026](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast)** ## Shaking out today's rate hold: Canada's [economic resilience](https://nbf.bluematrix.com/links2/pdf/312c41bb-18a8-4b08-b1e9-dd2b48cbadb3) kept our economy out of recession in 2025. The Bank of Canada is hoping for annualized [growth of 1.2%](https://www.bankofcanada.ca/publications/mpr/mpr-2025-10-29/projections/#:~:text=Projections-,Monetary%20Policy%20Report%E2%80%94October%202025,2%25%20over%20the%20projection%20horizon.) after projections of 2.6% were knocked off course by sudden trade chaos. - December's headline and core inflation were above target but **still moderate** (you'll probably disagree when buying groceries, which continue to increase at a faster pace). - December's labour report showed **more slack**, but the unemployment rate is still below 7% (at 6.8%). - Oct 2025 GDP showed negative growth of 0.3%, and Q4 data may squeak in just above the line. - Business hiring and investment intentions [remain dampened](https://www.bankofcanada.ca/2026/01/business-outlook-survey-fourth-quarter-of-2025/), focused on maintenance rather than growth. - During these uncertain times, the Bank of Canada will likely respond only to outlier data for cutting or raising its policy rate. --- ## Where do rates stand today? Historically speaking, the BoC rate of 2.25% (and prime rate of 4.45%) hovers near the midpoint. Mortgage rates in the mid- to high-3's are considered low to moderate, though higher than the very low rates we saw recently. - The **5-year fixed mortgage rate** is about **0.47% lower** (averaged) compared to this time last year.* - The **variable mortgage rate** (including discount off Prime) is about **0.63% lower** (averaged).* *\*According to True North Mortgage [Historical Rate Data](https://www.truenorthmortgage.ca/rates)* --- ## How can you save on your mortgage? ### Get the best rate and advice for your unique situation. ### Behind the renewal 8-ball? You can look beyond your current lender! We can quickly find your best option and help make the process seamless. **[SWITCH TO SAVE?](https://www.truenorthmortgage.ca/blog/renewal-should-you-stay-or-switch-lenders)** ### Need more monthly cash? Take a look at how a better rate can lower your payments and offer extra cash flow, term after term. **[COMPARE RATES](https://www.truenorthmortgage.ca/tools/savings-calculator)** ### Are variable rates more popular? *'Yes, definitely'* Over 40% of our clients chose a variable last month, choosing a lower rate and savings over the risk of change. **[FIXED VS VARIABLE?](https://www.truenorthmortgage.ca/blog/should-you-choose-a-variable-or-fixed-rate)** ### Move with some extra cash. Moving day coming up? Enlist MovingWaldo and get a discount through True North Mortgage — it's like finding money on the ground. **[TAKE $25 OFF](https://true-north-mortgage.booking.movingwaldo.com/quotes-request?utm_source=tnm&utm_medium=blog&utm_campaign=TNM-blog)** --- # *'Without a doubt,' your best rates.* We're certain that your **best rate and mortgage** will help you see the future a little clearer — with spare cash and budget room to ease financial stress. Call your expert [broker](https://www.truenorthmortgage.ca/company) or [apply now](https://apply.truenorthmortgage.ca/apply-online/start)! ## "Hey, Magic 8 Ball — will I save on my mortgage today?" If you got an 'Outlook is Good' in the window of destiny, **go with your gut** and get in touch with a friendly, expert True North broker who puts your mortgage needs and process first to save $3,000 on average per term — it's how we've racked up over [17,000 5-star reviews](https://www.truenorthmortgage.ca/about-us/reviews). Whether you're looking for your [first](https://www.truenorthmortgage.ca/mortgage-solutions/first-time-home-buyers) home-sweet-home, a second one to add to your collection, have a [renewal](https://www.truenorthmortgage.ca/tools/renewal-calculator) coming up, or need to [refinance](https://www.truenorthmortgage.ca/mortgage-solutions/refinancing-options), **we help you save** on rates, fees, time, and stress-ball costs. ## [EASILY APPLY](https://apply.truenorthmortgage.ca) online now **OR** ## [TALK TO A BROKER](https://www.truenorthmortgage.ca/company) in your preferred language **[FATE FAVOURS THE LOW RATE](https://www.truenorthmortgage.ca/rates)** --- ### Skip the magic, go straight to the source: - [Can you save by breaking now for a lower rate?](https://www.truenorthmortgage.ca/blog/how-much-will-it-cost-to-break-your-mortgage) - [Improve your spring home-buying outlook with a wintertime pre-approval](https://www.truenorthmortgage.ca/blog/why-wintertime-is-a-hidden-gem-for-mortgage-pre-approvals) - [That ultra-low variable rate offer? It could end up costing you more](https://www.truenorthmortgage.ca/blog/semi-annual-interest-compounding-vs-monthly) - [Learn how bond yields call the shots on where fixed mortgage rates go](https://www.truenorthmortgage.ca/blog/how-government-bond-yields-relate-to-mortgage-rates) - [Ever wondered what's behind lower insured mortgage rates?](https://www.truenorthmortgage.ca/blog/mbs-lenders-insured-mortgage-limit) / /